AGL UPSTREAM INVESTMENTS PTY LTD GLOUCESTER GAS PROJECT

AGL UPSTREAM INVESTMENTS PTY LTD GLOUCESTER GAS PROJECT July 2016 Water Monitoring Report Waukivory Pilot Project: Fracture Stimulation and Flow Test EPL 20358 Reporting Period: June 2016 AGL Upstream Investments Pty Ltd ABN 58 115 063 744 Locked Bag 1837, St Leonards NSW 2065 Level 22, 101 Miller Street, North Sydney NSW 2060 Telephone: 02 9921 2999 Facsimile: 02 9921 2474 Complaints Line (24 ): 1300 799 716

Foreword PREMISES Gloucester Coal Seam Gas Project Bucketts Way Gloucester NSW 2422 LICENCE DETAILS Environment Protection Licence 20358 LICENCEE AGL Upstream Investments Pty Limited (AGL) LICENCEE S ADDRESS Locked Bag 1837, North Sydney, NSW 2060 MONITORING DATE(s) 14 June 2016 MONITORING BY Parsons Brinckerhoff, on behalf of AGL ANALYSIS BY ALS Laboratory, Smithfield (Work order: ES1612855) DATE AGL OBTAINED DATA 24 June & 6 July 2016 REPORT DATE 8 July 2016 REPORT PREPARED BY James Duggleby, Senior Hydrogeologist GGP EPL 20358 Water Monitoring Report Waukivory Pilot Project July 2016 Page 2 of 14

Introduction On 4 February 2016 AGL Upstream Investments Pty Ltd (AGL) announced that the Gloucester Gas Project (GGP) will not proceed to final investment stage. AGL will relinquish Petroleum Exploration Licence (PEL) 285 to the NSW Government and have commenced a comprehensive decommissioning and rehabilitation program well sites and other infrastructure in the Gloucester region. A dedicated water monitoring network has been in place, which has enabled the collection of baseline water level and water quality data for the different groundwater and surface water systems within the Gloucester Basin. As part of the network, there were more than 50 dedicated water monitoring locations and more than five years of baseline monitoring (water levels and water quality) across the Gloucester Basin. The Gloucester Coal Seam Gas Project has Environment Protection Licence (EPL) 20358 for coal seam gas activities. This Monitoring Report relates to the water monitoring activities specified in Part 5, Monitoring and Recording Conditions, of EPL 20358. This report relates specifically to the monitoring surrounding the Waukivory Pilot Project, and details: Monitoring results from six monthly samples at monitoring points 10, 11, 90 (WKMB01, WKMB02, GR-P3) (Appendix B); Monitoring results from continuous water level (including piezometric level) monitoring at monitoring points 10, 11, 12, 14, 85, and 90 (WKMB01, WKMB02, WKMB03, PL03, WKMB05, GR-P3 (Appendix C and Appendix E, Figure 2, Figure 3, Figure 4); and Monitoring results from continuous water level (pressure) at monitoring points 86, 87, 88, 89 (WK11, WK12, WK13, WK14) (Appendix D and Appendix E, Figure 5). As per the EPL, monitoring encompasses the monitoring points at the locations as shown in Table 1 and Figure 1. The monitoring points that are the subject of this report are part of the GGP surface water and groundwater monitoring network, as described in AGL s Surface Water and Groundwater Management Plan (SGMP) for the Waukivory Pilot Project (AGL, 2015). Two methods were used to obtain the water samples: A submersible pump (12 V pump) at monitoring point 90 which is screened within relatively permeable geological material; and A micro-purge low flow sampling pump at groundwater monitoring points 10 and 11. The micro-purge system allows groundwater to be drawn into the pump intake directly from the screened portion of the aquifer, eliminating the need for excessive groundwater purging. The water quality samples are analysed by an external NATA certified laboratory (ALS Environmental, Smithfield), in accordance with the EPA Approved Methods Publication "Approved Methods for the Sampling and Analysis of Water Pollutants in New South Wales" (EPA, 2004), with the exception of those referenced in Section M2.6 of EPL 20358 and: Sodium hypochlorite, where detections of free and total residual chlorine were used as a proxy. The EPA have acknowledged that this method is a suitable technique for representing detections of sodium hypochlorite in water (EPA, 2014a). This report is prepared in accordance with the Requirements for Publishing Pollution Monitoring Data (EPA, 2012) (Publication Requirements). This is the final water monitoring data report for the Waukivory Pilot: fracture stimulation and flow test. The monitoring points listed in Table 1have now been decommissioned and will be rehabilitated in the coming months. The remaining water and land monitoring points in EPL 20358 will be reported in subsequent reports when the requirement for monitoring is triggered. More information on the groundwater monitoring of the GGP is available on the project website: agl.com.au/gloucester GGP EPL 20358 Water Monitoring Report Waukivory Pilot Project July 2016 Page 3 of 14

Table 1: Waukivory Pilot Project water monitoring points (as per EPL 20358) EPA Identification no. Monitoring Point Type of monitoring point Easting (m) Northing (m) 10 WKMB01 Groundwater monitoring bore 402153.63 6452566.28 11 WKMB02 Groundwater monitoring bore 402575.54 6452572.49 12 WKMB03 Groundwater monitoring bore 402589.87 6452584.93 14 PL03 Vibrating wire piezometer (groundwater) 85 WKMB05 Packer and piezometer completion: multizone monitoring well (groundwater) 402633.90 6449898.67 402576.59 6452128.62 86 WK11 Gas well 402419.02 6452589.82 87 WK12 Gas well 402748.92 6452883.77 88 WK13 Gas well 402416.74 6452164.46 89 WK14 Gas well 402906.10 6452384.08 90 GR-P3 Private groundwater bore 402905.50 6452518.71 Notes: Coordinate reference system: Map Grid of Australia 1994 GGP EPL 20358 Water Monitoring Report Waukivory Pilot Project July 2016 Page 4 of 14

Figure 1: Location of groundwater and surface water quality monitoring points: Waukivory Pilot Program (as per EPL 20358) GGP EPL 20358 Water Monitoring Report Waukivory Pilot Project July 2016 Page 5 of 14

References AGL, 2015. Surface Water and Groundwater Management Plan for the Waukivory Pilot Program Gloucester Gas Project. Available online: http://www.agl.com.au/~/media/agl/about%20agl/documents/how%20we%20source%20 Energy/Gloucester%20Document%20Repository/Water%20Plans/20150506_Surface%20Wate r%20and%20groundwater%20management%20plan%20for%20the%20waukivory%20pilot% 20Program.pdf Environment Protection Authority (EPA), 2014a. Letter correspondence to AGL Energy Limited. EPA reference: DOC14/192084-03; SF14/602, delivered on the 20 October 2014, signed: Carmen Dwyer, Special Project Manager Coal Seam Gas. Environment Protection Authority (EPA), 2014b. Letter correspondence to AGL Energy Limited. EPA reference: DOC14/279381-01; SF14/602, delivered on the 1 December 2014, signed: Brett Nudd, Acting Special Project Manager Coal Seam Gas. Environment Protection Authority (EPA), 2004. Approved Methods for the Sampling and Analysis of Water Pollutants in New South Wales, The Department of Environment and Conservation, Sydney, Australia. Available online: http://www.environment.nsw.gov.au/resources/water/approvedmethods-water.pdf The State of NSW and Environment Protection Authority (EPA), 2012. Requirements for publishing pollution monitoring data. Environment Protection Authority, Sydney, Australia. Available online: http://www.epa.nsw.gov.au/resources/licensing/130742reqpubpmdata.pdf GGP EPL 20358 Water Monitoring Report Waukivory Pilot Project July 2016 Page 6 of 14

Appendix A: Analytes monitored and frequency required for monitoring points in Table 1 (as per EPL 20358 (dated 4 May 2016)) Pollutant Units of measure 10 a,11 a,90 d 12 a,14 a,85 b 86 c,87 c,88 c,89 c Frequency Sampling method Frequency Sampling method Frequency Sampling method Aluminium milligrams per litre Special Frequency 3 Grab sample Ammonia milligrams per litre Special Frequency 3 Grab sample Arsenic milligrams per litre Special Frequency 3 Grab sample Barium milligrams per litre Special Frequency 3 Grab sample Benzene micrograms per litre Special Frequency 3 Grab sample Beryllium milligrams per litre Special Frequency 3 Grab sample Bicarbonate milligrams per litre Special Frequency 3 Grab sample Boron milligrams per litre Special Frequency 3 Grab sample Cadmium milligrams per litre Special Frequency 3 Grab sample Calcium milligrams per litre Special Frequency 3 Grab sample Carbonate milligrams per litre Special Frequency 3 Grab sample Chloride milligrams per litre Special Frequency 3 Grab sample Chromium milligrams per litre Special Frequency 3 Grab sample Cobalt milligrams per litre Special Frequency 3 Grab sample Copper milligrams per litre Special Frequency 3 Grab sample Electrical conductivity microsiemens per centimetre Special Frequency 3 Grab sample Ethyl benzene micrograms per litre Special Frequency 3 Grab sample Fluoride milligrams per litre Special Frequency 3 Grab sample Iron milligrams per litre Special Frequency 3 Grab sample Lead milligrams per litre Special Frequency 3 Grab sample Magnesium milligrams per litre Special Frequency 3 Grab sample Manganese milligrams per litre Special Frequency 3 Grab sample Mercury milligrams per litre Special Frequency 3 Grab sample Methane milligrams per litre Special Frequency 3 Grab sample Molybdenum milligrams per litre Special Frequency 3 Grab sample Nickel milligrams per litre Special Frequency 3 Grab sample Nitrate milligrams per litre Special Frequency 3 Grab sample Nitrite milligrams per litre Special Frequency 3 Grab sample ph ph Special Frequency 3 Grab sample Phosphorus (total) milligrams per litre Special Frequency 3 Grab sample Potassium milligrams per litre Special Frequency 3 Grab sample Reactive Phosphorus milligrams per litre Special Frequency 3 Grab sample Selenium milligrams per litre Special Frequency 3 Grab sample Silica milligrams per litre Special Frequency 3 Grab sample Sodium milligrams per litre Special Frequency 3 Grab sample Sodium Hypochlorite milligrams per litre Special Frequency 3 Special Method 7 Standing water level meters (Australian Height Datum) Special Frequency 8 Special Method 5 Special Frequency 8 Special Method 5 Special Frequency 9 Special Method 3 Strontium (dissolved) milligrams per litre Special Frequency 3 Grab sample Sulfate milligrams per litre Special Frequency 3 Grab sample Toluene micrograms per litre Special Frequency 3 Grab sample Total dissolved solids milligrams per litre Special Frequency 3 Grab sample Total organic carbon milligrams per litre Special Frequency 3 Grab sample Total suspended solids milligrams per litre Special Frequency 3 Grab sample Uranium milligrams per litre Special Frequency 3 Grab sample Vanadium milligrams per litre Special Frequency 3 Grab sample Xylene micrograms per litre Special Frequency 3 Grab sample Zinc milligrams per litre Special Frequency 3 Grab sample Notes: Special Frequency 3 6 monthly Special Frequency 8. Note that these monitoring points may form part of AGL's rehabilitation works, and should a monitoring point be rehabilitated, than monitoring will no longer be required from that point. Special Frequency 9 when using an automated datalogger, or, once every fortnight using a Sonolog in the event of failure of an automated datalogger. Special Method 1 - manual dip Special Method 3 - Use of an automated datalogger. As a back up contingency, by use of Sonolog in the event of failure of an automated datalogger. Special Method 5 - Automated datalogger Special Method 7 - Sodium hypochlorite is monitored through its elemental constituents. Free resdiual chlorine and total chlorine are monitored using existing validated methods. Shaded grey = not required to be analysed a Datalogger recording and sampling requirements from the points 10,11,90,12 ceased on 14 /06/2016 in advance of the decommissioning and rehabilitation of the monitoring bores. b Datalogger recording from the point 85 ceased on 12/05/2016 in advance of the decommissioning and rehabilitation of the monitoring well. c Datalogger recording for points 86,87,88 and 89 ceased on 23/06/2015 in advance of decommissioning and rehabilitation of the gas wells. d Datalogger recording from point 14 ceased on 16/06/2016 in advance of decommissing of the monitoring bore. GGP EPL 20358 Water Monitoring Report Waukivory Pilot Project July 2016 Page 7 of 14

Appendix B: Water quality monitoring data for points 10, 11, 90 Analysis by: ALS Laboratory, Smithfield (Work order: ES1612855) Monitoring points 10 11 90 Location WKMB01 WKMB02 GR-P3 Sampled date 14/06/2016 14/06/2016 14/06/2016 Date AGL obtained data 24/06/2016 24/06/2016 24/06/2016 Monitoring event 6-monthly sample 6-monthly sample 6-monthly sample Analyte Units of measure Limit of reporting Analyte Aluminium mg/l 0.01 0.01 0.12 <0.01 Aluminium Ammonia mg/l 0.01 0.54 0.38 0.03 Ammonia Arsenic mg/l 0.001 <0.001 0.001 <0.001 Arsenic Barium mg/l 0.001 0.312 0.073 0.489 Barium Benzene µg/l 1 <1 <1 <1 Benzene Beryllium mg/l 0.001 <0.001 <0.001 <0.001 Beryllium Bicarbonate mg/l 1 966 215 401 Bicarbonate Boron mg/l 0.05 0.10 <0.05 <0.05 Boron Cadmium mg/l 0.0001 <0.0001 <0.0001 <0.0001 Cadmium Calcium mg/l 1 10 2 131 Calcium Carbonate mg/l 1 <1 174 <1 Carbonate Chloride mg/l 0.1 931 157 1160 Chloride Chromium mg/l 0.001 <0.001 <0.001 <0.001 Chromium Cobalt mg/l 0.001 <0.001 <0.001 <0.001 Cobalt Copper mg/l 0.001 <0.001 <0.001 <0.001 Copper Electrical conductivity µs/cm 1 4350 922 4300 Electrical conductivity Ethyl benzene µg/l 2 <2 <2 <2 Ethyl benzene Fluoride mg/l 0.1 1.9 0.5 0.3 Fluoride Iron mg/l 0.05 <0.05 0.30 0.30 Iron Lead mg/l 0.001 <0.001 <0.001 <0.001 Lead Magnesium mg/l 1 1 <1 73 Magnesium Manganese mg/l 0.001 0.007 0.004 0.675 Manganese Mercury mg/l 0.0001 <0.0001 <0.0001 <0.0001 Mercury Methane mg/l 0.01 14.3 5.38 0.024 Methane Molybdenum mg/l 0.001 <0.001 <0.001 <0.001 Molybdenum Nickel mg/l 0.001 <0.001 <0.001 0.002 Nickel Nitrate mg/l 0.01 0.02 0.02 0.04 Nitrate Nitrite mg/l 0.01 <0.01 <0.01 <0.01 Nitrite ph ph Unit 0.01 8.11 9.66 6.70 ph Phosphorus (total) mg/l 0.01 0.07 0.09 0.06 Phosphorus (total) Potassium mg/l 1 2 9 2 Potassium Reactive Phosphorus mg/l 0.01 0.06 0.08 0.03 Reactive Phosphorus Selenium mg/l 0.01 <0.01 <0.01 <0.01 Selenium Silica mg/l 0.05 15.7 21.4 36.3 Silica Sodium mg/l 1 981 209 636 Sodium Sodium Hypochlorite (reported Sodium Hypochlorite (reported mg/l 0.2 <0.2 <0.2 <0.2 as free chlorine) as free chlorine) Sodium Hypochlorite (reported Sodium Hypochlorite (reported mg/l 0.2 <0.2 <0.2 <0.2 as residual chlorine) as residual chlorine) Standing water level mahd 0.01 Refer to Appendix C and E Standing water level Strontium (dissolved) mg/l 0.001 1.47 0.220 2.27 Strontium (dissolved) Sulfate mg/l 1 30 26 88 Sulfate Toluene µg/l 2 <2 <2 <2 Toluene Total dissolved solids mg/l 10 2460 551 2550 Total dissolved solids Total organic carbon mg/l 1 <1 6 2 Total organic carbon Total suspended solids mg/l 5 <5 5 37 Total suspended solids Uranium mg/l 0.001 <0.001 <0.001 0.003 Uranium Vanadium mg/l 0.01 <0.01 <0.01 <0.01 Vanadium Xylene µg/l 2 <2 <2 <2 Xylene Zinc mg/l 0.005 <0.005 <0.005 0.015 Zinc GGP EPL 20358 Water Monitoring Report Waukivory Pilot Project July 2016 Page 8 of 14

Appendix C: Continuous water level monitoring results for monitoring points 10, 11, 12, 14, 85, and 90 (tabulated summary) Note: Datalogger recording and sampling requirements from the points 10,11,90,12 ceased on 14 June 2016 in advance of the decommissioning and rehabilitation of the monitoring bores. Datalogger recording at monitoring point 14 ceased on 16 June in advance of decommissioning of the monitoring bore. Datalogger recording at monitoring point 85 ceased on 13 May 2016 in advance of decommissioning and rehabilitation of the monitoring well. Monitoring point 10 11 12 14 85 90 Location WKMB01 WKMB02 WKMB03 PL03 WKMB05 GR-P3 Sensor 2 Sensor 3 Sensor 1 Sensor 2 Sensor 3 Sensor 4 Sensor 5 Sensor 6 Monitored interval (mbgl) 47-53 51-60 200-209 496 463 340.0-343.0 426.0-429.0 584.0-587.0 595.4-598.4 698.5-701.5 711.0-714.0 5.0-9.0 Data type Standing water level Units mahd (metres Australian Height Datum) Data start 02/02/2016 02/02/2016 02/02/2016 01/04/2015 01/04/2015 03/02/2016 03/02/2016 03/02/2016 03/02/2016 03/02/2016 03/02/2016 03/02/2016 Date data downloaded Date data supplied to AGL Monitoring frequency required by licence No. of times measured during monitoring period 14/06/2016 14/06/2016 14/06/2016 16/06/2016 16/06/2016 13/05/2016 13/05/2016 13/05/2016 13/05/2016 13/05/2016 13/05/2016 14/06/2016 6/07/2016 6/07/2016 6/07/2016 6/07/2016 6/07/2016 6/07/2016 6/07/2016 6/07/2016 6/07/2016 6/07/2016 6/07/2016 6/07/16 6905 535 534 1716 1771 331 331 331 327 331 331 531 Min. value 86.47 96.28 84.77 75.50 43.82 103.07 99.48 110.74 117.95 139.04 166.65 97.17 Mean value 95.81 96.53 98.62 78.11 48.37 103.46 100.41 111.66 118.56 140.36 167.73 97.60 Median value 95.96 96.48 98.78 77.37 44.89 103.47 100.43 111.67 118.63 140.45 167.78 97.56 Max. value 96.07 97.10 98.84 82.59 47.27 103.59 100.69 112.07 118.84 140.90 167.93 98.17 GGP EPL 20358 Water Monitoring Report Waukivory Pilot Project July 2016 Page 9 of 14

Appendix D: Continuous water level monitoring results for monitoring points 86, 87, 88, and 89 (tabulated summary) Monitoring point 86 87 88 89 Location WK11 WK12 WK13 WK14 Data type Units Standing water level mahd (metres Australian Height Datum) Data start 01/01/2016 01/01/2016 01/01/2016 01/01/2016 Date data downloaded 18/06/2016 19/06/2016 07/05/2016 10/05/2016 Date data supplied to AGL Monitoring frequency as required by licence No. of times measured during monitoring period 06/07/2016 06/07/2016 06/07/2016 06/07/2016 when using an automated datalogger; or, once every fortnight using a Sonolog in the event of failure of an automated datalogger 314 128 144 133 Min. value -804.40-485.97-795.20-644.80 Mean value -570.97-381.49-748.85-554.54 Median value -561.90-392.97-756.70-550.80 Max. value -328.40-105.97-666.20-462.80 GGP EPL 20358 Water Monitoring Report Waukivory Pilot Project July 2016 Page 10 of 14

Appendix E: Continuous water level monitoring results (hydrographs) Figure 2: Continuous water level monitoring results for monitoring points 10 (WKMB01), 11 (WKMB02), 12 (WKMB03), and 90 (GR-P3) for the period 2 February 2016 14 June 2016. GGP EPL 20358 Water Monitoring Report Waukivory Pilot Project July 2016 Page 11 of 14

Figure 3: Continuous water level monitoring results for monitoring point 85 (WKMB05) for the period 3 February 2016 13 May 2016. GGP EPL 20358 Water Monitoring Report Waukivory Pilot Project July 2016 Page 12 of 14

Figure 4: Continuous water level monitoring results for monitoring point 14 (PL03) for the period 1 April 2015 16 June 2016. GGP EPL 20358 Water Monitoring Report Waukivory Pilot Project July 2016 Page 13 of 14

Figure 5: Continuous water level monitoring results for monitoring points 86 (WK11), 87 (WK12), 88 (WK13), and 89 (WK14) for the period 1 January 2016-19 June 2016. Note (Figure 5): Water levels (pressure levels) in the pilot wells are highly variable and dependent on pump commissioning and operation (including fluctuating pumping rates). When pumping is taking place, pressure level declines (drawdown) are observed in the pilot wells and when pumping ceases the pressure levels re-equilibrate (recover) to that of the target formations. The pump commissioning and flowback phases comprise periods where the pumps have been in operation and periods where pumping has ceased either due to workover intervention or suspension. Fluctuations in April 2016 occur as a result of gas venting from the wells in advance of the decommissioning and rehabilitation program. Datalogger recording from point 86 ceased on 18 June 2016 in advance of decommissioning. Datalogger recording from point 87 ceased on 19 June 2016 in advance of decommissioning. Datalogger recording from point 88 ceased on 07 May 2016 in advance of decommissioning. Datalogger recording from point 89 ceased on 10 May 2016 in advance of decommissioning. GGP EPL 20358 Water Monitoring Report Waukivory Pilot Project July 2016 Page 14 of 14